95-21879. Clean Air Act Approval and Promulgation of State Implementation Plan for South Dakota; Revisions to the Air Pollution Control Program  

  • [Federal Register Volume 60, Number 172 (Wednesday, September 6, 1995)]
    [Rules and Regulations]
    [Pages 46222-46228]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-21879]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Part 52
    
    [SD6-1-6947a and SD5-1-6191a; FRL-5279-3]
    
    
    Clean Air Act Approval and Promulgation of State Implementation 
    Plan for South Dakota; Revisions to the Air Pollution Control Program
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Direct final rule.
    
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    SUMMARY: EPA approves the State implementation plan (SIP) revisions 
    submitted by the State of South Dakota on November 12, 1993 and March 
    7, 1995. EPA is replacing the existing rules approved in the SIP with 
    the following chapters of the Administrative Rules of South Dakota 
    (ARSD), as requested by the State: 74:36:01-74:36:04, 74:36:06; 
    74:36:07, 74:36:10-74:36:13, and 74:36:15, as in effect on January 5, 
    1995. The State's submittals included revisions to the State's 
    definitions, minor source construction and federally enforceable state 
    operating permit (FESOP) rules, source category emission limitations, 
    sulfur dioxide (SO2) rules, new source performance standards 
    (NSPS), new source review (NSR) requirements for new and modified major 
    sources impacting nonattainment areas, and enhanced monitoring and 
    compliance certification requirements.
        In addition, EPA is approving the State's construction and 
    operating permit program under section 112(l) of the Clean Air Act 
    (Act) for the purposes of creating federally enforceable permit 
    conditions for sources of hazardous air pollutants (HAPs).
    
    DATES: This final rule is effective on November 6, 1995 unless adverse 
    comments are received by October 6, 1995. If the effective date is 
    delayed, timely notice will be published in the Federal Register.
    
    ADDRESSES: Copies of the State's submittal and other information are 
    available for inspection during normal business hours at the following 
    locations: Air Programs Branch, Environmental Protection Agency, Region 
    VIII, 999 18th Street, suite 500, 
    
    [[Page 46223]]
    Denver, Colorado 80202-2405; South Dakota Department of Environment and 
    Natural Resources, Division of Environmental Regulation, Joe Foss 
    Building, Pierre, South Dakota 57501; and The Air and Radiation Docket 
    and Information Center, 401 M Street, SW, Washington, D.C. 20460.
        Written comments should be addressed to Vicki Stamper, 8ART-AP, 
    Environmental Protection Agency, Region VIII, 999 18th Street, suite 
    500, Denver, Colorado.
    
    FOR FURTHER INFORMATION CONTACT: Vicki Stamper, (303) 293-1765.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        On November 12, 1993, the State of South Dakota submitted revisions 
    to its SIP. Specifically, the State requested that the existing State 
    rules approved in the SIP be replaced with the most recent codification 
    of the ARSD, Chapters 74:36:01-04 and 74:36:06-13 inclusive. In 
    addition to recodification, the State made numerous revisions to its 
    air quality regulations, including definitions, minor source 
    construction and operating permit rules, source category emission 
    limitations, NSPS, national emission standards for hazardous air 
    pollutants (NESHAPs), NSR requirements for new and modified sources 
    impacting nonattainment areas, and other minor revisions.
        In a July 13, 1994 letter, EPA noted many deficiencies in the 
    State's November 12, 1993 submittal and requested that the State 
    correct the major deficiencies before EPA would proceed with approval. 
    The State made those corrections to its rules and submitted the rule 
    corrections to EPA on March 7, 1995. In that submittal, the State also 
    addressed EPA's July 7, 1994 call for revision of the South Dakota SIP 
    to comply with the enhanced monitoring and compliance certification 
    program requirements of sections 110, 113, and 114 of the Act. In 
    addition, the State adopted other revisions to its rules, including its 
    acid rain rules and updates to its incorporation by reference of the 
    Federal requirements for NSPS and HAPs.
        The March 7 submittal requested that the previous regulations 
    approved in the SIP be replaced with ARSD Chapters 74:36:01-74:36:04, 
    74:36:06; 74:36:07, 74:36:10-74:36:13, and 74:36:15, as in effect on 
    January 5, 1995. The following State regulations were not included in 
    the State's March 7 SIP submittal: ARSD 74:36:05 Operating Permits for 
    Part 70 Sources, for which EPA granted interim approval on March 22, 
    1995 (see 60 FR 15066-15069); ARSD 74:36:08 National Emission Standards 
    for Hazardous Air Pollutants, which the State has taken out of the SIP 
    and has instead requested delegation of authority for these standards; 
    ARSD 74:36:09 Prevention of Significant Deterioration (PSD), which 
    incorporates by reference the corresponding Federal rules at 40 CFR 
    52.21 that EPA delegated authority to the State to implement on July 6, 
    1994 (see September 15, 1994 Federal Register, 59 FR 47260); ARSD 
    74:36:14 Variances, which the State did not include in the SIP because 
    such a provision could not be approved as part of the SIP as it is 
    inconsistent with section 110(i) of the amended Act; and ARSD 74:36:16 
    Acid Rain Program, which will be acted on by EPA separate from this SIP 
    approval.
        This document evaluates the State's submittal for conformity with 
    the corresponding Federal regulations and the requirements of the Act.
    
    II. This Action
    
    A. Analysis of State Submissions
    
    1. Procedural Background
        The Act requires States to observe certain procedural requirements 
    in developing implementation plans and plan revisions for submission to 
    EPA. Section 110(a)(2) of the Act provides that each implementation 
    plan submitted by a State must be adopted after reasonable notice and 
    public hearing. Section 110(l) of the Act similarly provides that each 
    revision to an implementation plan submitted by a State under the Act 
    must be adopted by such State after reasonable notice and public 
    hearing.
        The EPA also must determine whether a submittal is complete and 
    therefore warrants further EPA review and action [see section 110(k)(1) 
    and 57 FR 13565, April 16, 1992]. The EPA's completeness criteria for 
    SIP submittals are set out at 40 CFR part 51, appendix V. The EPA 
    attempts to make completeness determinations within 60 days of 
    receiving a submission. However, a submittal is deemed complete by 
    operation of law under section 110(k)(a)(B) if a completeness 
    determination is not made by EPA within six months after receipt of the 
    submission.
        The State of South Dakota held public hearings on February 18, 1993 
    and November 17, 1994 to entertain public comment on the SIP revisions, 
    at which the rule revisions were adopted by the State. These rule 
    revisions were formally submitted to EPA for approval in the SIP on 
    November 12, 1993 and on March 7, 1995.
        The SIP revisions were reviewed by EPA to determine completeness 
    shortly after their submittal, in accordance with the completeness 
    criteria referenced above. The submittals were found to be complete, 
    and letters dated January 12, 1994 and June 28, 1995 were forwarded to 
    the Governor indicating the completeness of the submittals and the next 
    steps to be taken in the processing of the SIP submittals.
    2. Evaluation of State's Submittals
        The following summarizes the State's submittals and EPA's review 
    for approvability:
    a. ARSD 74:36:01  Definitions
        The State made numerous revisions to its definitions in ARSD 
    74:36:01 in order to make the definitions consistent with other 
    provisions in the State's rules and with the corresponding Federal 
    regulations, including the State's recently adopted title V permitting 
    program in ARSD 74:36:05 and the acid rain program in ARSD 74:36:16.
        EPA has reviewed the definitions included in this chapter against 
    the corresponding Federal definitions in 40 CFR parts 51, 60, and 70 
    and for conformity with the State's regulations. EPA believes the 
    revised definitions are consistent with the corresponding Federal 
    definitions, with the following clarifications.
        As discussed in EPA's January 12, 1995 Federal Register notice of 
    proposed interim approval of South Dakota's title V program (see 60 FR 
    2919), EPA believes clarification regarding two of the State's 
    definitions is necessary to ensure that the provisions are interpreted 
    consistently with the Federal regulations:
        (1) The definition of ``federally enforceable'' which appears at 
    ARSD 74:36:01:01(28) reads as follows:
    
        ``Federally enforceable,'' all limits and conditions that are 
    enforceable by the administrator of EPA pursuant to federal law. 
    These limits and conditions include those requirements developed 
    pursuant to this article, those appearing in 40 CFR 60 and 61 (July 
    1, 1993), requirements within the state implementation plan and 
    permit requirements established pursuant to this article or 40 CFR 
    51 Subpart I (July 1, 1993). The use of this term does not impede 
    the Department's authority under state law to enforce these limits 
    and conditions.
    
        This definition is significant for determining whether a source is 
    subject to preconstruction and operating permitting requirements as a 
    major source or as a minor source, because it is used in defining the 
    ``potential to emit'' of a source. To be consistent with EPA's 
    definition of ``federally 
    
    [[Page 46224]]
    enforceable,'' the second sentence of the above definition cannot and 
    should not be read to expand on the first sentence of the definition. 
    For example, requirements developed pursuant to ARSD Article 74:36 
    might be, but would not necessarily be, federally enforceable. Such 
    Federal enforceability would depend on whether such requirements had 
    been included in a source's preconstruction or operating permit issued 
    under an EPA-approved program, whether such requirements had been 
    approved by EPA as part of the SIP, or whether such requirements were 
    already considered Federal regulations (such as NSPS promulgated in 40 
    CFR part 60 which South Dakota has incorporated by reference in ARSD 
    74:36:07). EPA's interpretation is that the requirements delineated in 
    the second sentence of the definition are only federally enforceable if 
    they are enforceable by the administrator of EPA pursuant to Federal 
    law.
        (2) The second sentence of the definition of ``major source'' in 
    ARSD 74:36:01:08(1) reads as follows:
    
        Emissions from any oil exploration or production well and its 
    associated equipment and emissions from any pipeline compressor or 
    pump station may not be aggregated with emissions from other similar 
    units, whether or not such units are in a contiguous area or under 
    common control, to determine whether such units or stations are 
    major sources.
    
        To be consistent with the Federal regulations, this sentence must 
    be read as only being applicable to a determination of whether a source 
    is major under section 112 of the Act. This language cannot be applied 
    when determining whether a source is major under other sections of the 
    Act.
        With these interpretations, EPA believes the definitions in ARSD 
    74:36:01 are consistent with the corresponding Federal regulations. EPA 
    is approving all of the definitions in ARSD 74:36:01, with the 
    exception of two definitions related to the State's acid rain program 
    which EPA will be acting on separately: ``acid rain permit'' and ``acid 
    rain program'' in ARSD 74:36:01:01(2) and (3).
    b. ARSD 74:36:02  Ambient Air Quality
        This chapter was revised to refer to the Federal regulations for 
    the National Ambient Air Quality Standards (NAAQS), methods of sampling 
    and analysis, air quality monitoring networks, and ambient air 
    monitoring in 40 CFR parts 50, 53, and 58. The State's regulation is 
    consistent with the relevant Federal requirements and is approvable.
    c. ARSD 74:36:03  Air Quality Episodes
        This chapter was revised to refer to the Federal guidelines for 
    emergency episode plans in 40 CFR 51.151-153 and appendix L. The 
    State's regulation is consistent with the relevant Federal requirements 
    and is approvable.
    d. ARSD 74:36:04  Operating Permits for Minor Sources
        This chapter was revised extensively to combine the State's 
    existing minor source construction permit and FESOP requirements into 
    one permitting system and to ensure compliance with the Federal 
    requirements for both construction permit programs and FESOP programs. 
    This chapter only applies to sources which are not considered to be 40 
    CFR part 70 sources (i.e., sources which are not required to obtain a 
    title V operating permit). (Note that the State's construction 
    permitting program for new and modified major sources is the State's 
    PSD permitting program in ARSD 74:36:09.) Specifically, a new source in 
    South Dakota must obtain an operating permit prior to construction, and 
    an existing source must obtain a permit in order to operate the source. 
    Such operating permits will be valid for five years and must be 
    renewed.
        (1) Construction Permit Program.
        The minor source construction permit element of the State's 
    permitting program must meet the corresponding Federal requirements in 
    40 CFR 51.160-164, in order to be approved by EPA. As detailed in the 
    Technical Support Document (TSD) accompanying this notice, EPA believes 
    the State's construction permit requirements meet all of the 
    corresponding Federal requirements in 40 CFR 51.160-164.
        (2) FESOP Program.
        On June 28, 1989, EPA published criteria for approving and 
    incorporating into the SIP regulatory programs for the issuance of 
    FESOPs (see 54 FR 27282). Permits issued pursuant to an operating 
    permit program approved into the SIP as meeting these criteria may be 
    considered federally enforceable. The EPA has encouraged States to 
    develop such FESOP programs in conjunction with title V operating 
    permit programs to enable sources to limit their potential to emit to 
    below the title V applicability thresholds. (See the September 18, 1992 
    guidance document entitled, ``Limitation of Potential to Emit with 
    Respect to Title V Applicability Thresholds,'' from John Calcagni, 
    Director, Air Quality Management Division, Office of Air Quality 
    Planning and Standards (OAQPS), Office of Air and Radiation, U.S. EPA.) 
    In addition, on November 3, 1993, EPA announced in a guidance document 
    entitled, ``Approaches to Creating Federally Enforceable Emissions 
    Limits,'' from John S. Seitz, Director, OAQPS, that this mechanism 
    could be extended to create federally enforceable limits for emissions 
    of HAPs if the program were approved pursuant to section 112(l) of the 
    Act. (See Section III. below for further details on EPA's section 
    112(l) approval of South Dakota's FESOP program.)
        As detailed in the TSD, EPA has reviewed the State's permitting 
    program for conformity with the FESOP criteria outlined in the June 28, 
    1989 Federal Register notice and believes the State's program 
    adequately meets those requirements, although one clarification 
    regarding their rules needs to be made:
        South Dakota's rules do not specifically provide for submittal of 
    each proposed and final permit to EPA on a timely basis. However, EPA 
    has established procedures in the annual State-EPA agreement requiring 
    the State to submit to EPA proposed and final permits which would limit 
    the potential to emit of a source so that it would not be considered 
    major. EPA reiterates that requirement in this document. That is, for 
    any operating permit issued by the State to be considered federally 
    enforceable, the State must submit the proposed and final permit to EPA 
    in a timely manner, as well as meet all of the other requirements of 
    its program and the June 28, 1989 Federal Register.
        Thus, EPA is approving South Dakota's construction permit/FESOP 
    program because it adequately meets the requirements of the June 28, 
    1989 Federal Register and 40 CFR 51.160-164. Permits issued by the 
    State that conform to the State's rules and corresponding Federal 
    requirements will be considered federally enforceable. See the TSD 
    accompanying this document for further details.
    e. ARSD 74:36:06  Regulated Air Pollutants
        In this chapter, the State combined its Control of Particulate 
    Emissions regulation previously codified in ARSD 74:26:06 and its 
    Control of Sulfur Compound Emissions regulation previously codified in 
    ARSD 74:26:07 into one chapter. The State made minor revisions to 
    simplify its particulate matter emission regulations, which EPA 
    believes are consistent with the Act and approvable.
        In addition, the State made revisions to its regulations 
    controlling SO2 emissions in this chapter, as a result of EPA's 
    nationwide effort to have SO2 enforceability deficiencies 
    identified 
    
    [[Page 46225]]
    and corrected in SIPs before title V operating permit programs become 
    effective. Because the title V operating permits will initially 
    incorporate underlying SIP requirements, it is important that the 
    underlying SIP is enforceable so that the permits themselves will be 
    enforceable. Thus, on March 8, 1991, EPA provided a list of 
    enforceability deficiencies in South Dakota's SO2 emission control 
    rules. The Region used the ``SO2 SIP Enforceability Checklist'' 
    when reviewing South Dakota's SO2 rules for enforceability 
    deficiencies. This checklist was included as an attachment to the 
    November 28, 1990 memorandum from Robert Bauman and Rich Biondi to the 
    Air Branch Chiefs, and it focused on the following topics:
        (1) Clarity;
        (2) Averaging times consistent with protection of the SO2 
    NAAQS;
        (3) Clear compliance determinations;
        (4) Continuous emission monitoring;
        (5) Adequate reporting and recordkeeping requirements;
        (6) Director's discretion issues; and
        (7) Stack height issues.
        The State of South Dakota subsequently adopted revisions to address 
    the deficiencies outlined in EPA's March 8, 1991 letter. Those 
    revisions include: clarifying the applicability of this chapter to 
    include units required to be permitted under article 74:36; specifying 
    a 3-hour rolling averaging time, consistent with the SO2 NAAQS, 
    for the SO2 emission limitations of this chapter; and referring to 
    test methods listed in chapter 74:36:11 and including appropriate 
    reference methods in that chapter. Recordkeeping and reporting 
    requirements are addressed through the operating permit rules in ARSD 
    74:36:05:16.
        EPA believes the State has adequately addressed the SO2 
    deficiencies identified in EPA's March 8, 1991 letter. Therefore, EPA 
    is approving the State's SO2 regulations.
    f. ARSD 74:36:07  New Source Performance Standards
        In this chapter, the State has adopted new NSPS by incorporating by 
    reference the Federal NSPS for subparts Dc, QQ, RR, VV, XX, AAA, JJJ, 
    NNN, and SSS of 40 CFR part 60, as in effect on July 1, 1993. Also, the 
    State updated the incorporation by reference citations of its existing 
    NSPS to reflect the July 1, 1993 version of 40 CFR part 60. In 
    addition, the State added a provision clarifying that the term 
    ``administrator,'' as used in the Federal regulations incorporated into 
    the State's regulations, means the State except for those authorities 
    which cannot be delegated to the State, in which case ``administrator'' 
    means both EPA and the State. Since this chapter incorporates by 
    reference the Federal NSPS in 40 CFR part 60, it is consistent with 
    Federal requirements and approvable.
    g. ARSD 74:36:10  New Source Review
        In this chapter, the State adopted provisions for new and modified 
    major stationary sources proposing to locate in attainment/unclassified 
    areas but which cause or contribute to a violation of the NAAQS, in 
    accordance with the requirements in 40 CFR 51.165(b). The State 
    currently has no areas designated nonattainment for the NAAQS, so the 
    State is currently not required to adopt nonattainment NSR provisions. 
    EPA has reviewed the provisions in this chapter against the 
    corresponding Federal requirements in 40 CFR 51.165 and found it to be 
    consistent and therefore approvable.
    h. ARSD 74:36:11  Stack Performance Testing
        This chapter was revised to refer to the Federal test methods in 40 
    CFR part 51, appendix M, and 40 CFR part 60 as the test methods 
    required to be used by sources and to make other minor revisions. EPA 
    has reviewed the revisions to this chapter and has found they are 
    consistent with the corresponding Federal requirements and approvable.
    i. ARSD 74:36:12  Control of Visible Emissions
        Minor revisions were made to this chapter, mainly to update the 
    incorporation by reference of 40 CFR part 60, appendix A to reflect the 
    July 1, 1993 version. EPA has reviewed the revisions to this chapter 
    and has found they are consistent with the corresponding Federal 
    requirements.
    j. ARSD 74:36:13  Continuous Emission Monitoring Systems
        (1) Continuous Emission Monitoring Requirements.
        This new chapter was added to authorize the State to require major 
    sources to install continuous emission monitors (CEMs) and to require 
    that such CEMs meet the Federal performance specifications in 40 CFR 
    part 60. EPA has reviewed these requirements adopted in ARSD 
    74:36:13:01-05 and has found these rules to be consistent with the 
    corresponding Federal requirements and approvable.
        (2) Enhanced Monitoring and Compliance Certification.
        This regulation also address EPA's nationwide SIP call regarding 
    the new enhanced monitoring and compliance certification requirements 
    of the amended Act. On October 22, 1993, EPA announced in the Federal 
    Register that SIP calls pursuant to section 110(k)(5) of the Act would 
    be issued in order to implement the enhanced monitoring requirements of 
    section 114(a)(3) of the Act and the periodic monitoring requirements 
    for operating permits under sections 502(b)(2) and 504 of the Act (see 
    58 FR 54677). This SIP call is required because existing SIPs are 
    inadequate in that they may be interpreted to limit the types of 
    testing or monitoring data that may be used for determining compliance 
    and establishing violations.
        On July 7, 1994, the EPA notified the Governor of South Dakota that 
    a SIP revision was necessary to meet the aforementioned requirements of 
    the Act. EPA's letter provided the States with two options for 
    regulatory language that, if adopted by the State and submitted to EPA 
    for approval in the SIP, would satisfy the requirements of this SIP 
    call. In Sections 74:36:13:06-07 of the ARSD, the State has adopted 
    provisions which are essentially identical to the regulatory language 
    provided in option 2 of the attachment to EPA's July 7, 1994 letter, as 
    follows:
        (a) In ARSD 74:36:13:06, the State has added a provision stating 
    that, when submitting compliance certifications, an owner or operator 
    of a source may use monitoring as required under 40 CFR 70.6(a)(3) in 
    addition to any specified compliance methods. The practical effect of 
    this provision is that the SIP is now more flexible and inclusive and 
    does not preclude the use of enhanced monitoring.
        (b) In ARSD 74:36:13:07, the State has added provisions stating 
    that any credible evidence may be used to determine if a violation has 
    occurred at a source. The rule provides that information from 
    monitoring methods approved in a federally enforceable operating permit 
    or in the SIP, as well as from any other federally enforceable 
    monitoring and testing methods (including those in 40 CFR Parts 51, 60, 
    61, and 75), may be used by the State as credible evidence to determine 
    compliance.
        EPA believes the State has adequately satisfied the requirements of 
    that SIP call letter and, therefore, is approving Sections 74:36:13:06-
    07 regarding enhanced monitoring and compliance certifications. 
    
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    k. ARSD 74:36:15  Open Burning
        The State made revisions to this chapter by further detailing those 
    items that could not be disposed of by open burning, and by providing 
    ability for small municipalities to burn solid wastes. Other minor 
    revisions were also made. EPA has reviewed the revisions and believes 
    they are consistent with the requirements of the Act and approvable.
    
    III. Approval of South Dakota's Construction and Operating Permit 
    Program Under Section 112(l) of the Act.
    
        In this action, EPA is also approving South Dakota's combined 
    construction/FESOP permit program in ARSD 74:36:04 under section 112(l) 
    of the Act for the purpose of creating federally enforceable limits on 
    the potential to emit of HAPs listed pursuant to section 112(b) of the 
    Act. Approval under section 112(l) is necessary to allow the State to 
    create federally enforceable limits on the potential to emit of HAPs, 
    because SIP approval of this permitting program only extends to the 
    control of HAPs which are photochemically reactive organic compounds or 
    particulate matter. Federally enforceable limits on photochemically 
    reactive organic compounds or particulate matter may have the 
    incidental effect of limiting certain HAPs.1 As a legal matter, no 
    additional program approval by EPA is required in order for these 
    ``criteria'' pollutant limits to be recognized as federally 
    enforceable. However, section 112 of the Act provides the underlying 
    authority for controlling all HAP emissions.
    
        \1\ EPA issued guidance addressing the technical aspects of how 
    these criteria pollutant limits may be recognized for purposes of 
    limiting a source's potential to emit of HAPs to below section 112 
    major source levels. Please refer to the January 25, 1995 EPA policy 
    from John Seitz and Robert Van Heuvelen entitled ``Options for 
    Limiting the Potential to Emit of a Stationary Source under Section 
    110 and Title V of the Clean Air Act,'' available at the EPA office 
    listed at the beginning of this document.
        As discussed above and in the TSD, the criteria which are used in 
    approving minor source construction permit programs are located in 40 
    CFR 51.160-164. EPA believes the most significant criteria in 40 CFR 
    part 51 for creating federally enforceable limits through construction 
    permits are those in 40 CFR 51.160-162. Further, as discussed in EPA's 
    January 25, 1995 memorandum from John S. Seitz, Director of the Office 
    of Air Quality Planning and Standards, and Robert I. Van Heuvelen, 
    Director of the Office of Regulatory Enforcement, entitled ``Options 
    for Limiting the Potential to Emit of a Stationary Source Under Section 
    112 and Title V of the Clean Air Act,'' in order for EPA to consider 
    any construction permit terms federally enforceable, such permit 
    conditions must be enforceable as a practical matter. South Dakota's 
    permitting program will allow the State to issue permits that are 
    enforceable as a practical matter. Thus, any permits issued in 
    accordance with South Dakota's construction permit program and which 
    are practically enforceable would be considered federally enforceable.
        EPA believes that the five approval criteria for approving FESOP 
    programs into the SIP, as specified in the June 28, 1989 Federal 
    Register notice, are also appropriate for evaluating and approving such 
    programs under section 112(l). The requirements outlined in the June 
    28, 1989 notice need not be unique to criteria pollutants since the 
    reason that the notice does not address HAPs is simply that it was 
    written prior to the 1990 Amendments to section 112.
        In addition to meeting the criteria in 40 CFR 51.160-164 for 
    construction permits and the criteria in the June 28, 1989 Federal 
    Register notice for FESOPs, a permitting program that addresses HAPs 
    must meet the statutory criteria for approval under section 112(l)(5). 
    Section 112(l) allows EPA to approve a program only if it: (1) Contains 
    adequate authority to assure compliance with any section 112 standards 
    or requirements; (2) provides for adequate resources; (3) provides for 
    an expeditious schedule for assuring compliance with section 112 
    requirements; and (4) is otherwise likely to satisfy the objectives of 
    the Act.
        EPA plans to codify the approval criteria for programs limiting 
    potential to emit of HAPs through amendments to subpart E of 40 CFR 
    part 63, the regulations promulgated to implement section 112(l) of the 
    Act. (See 58 FR 62262, November 26, 1993.) EPA believes it has the 
    authority under section 112(l) to approve programs to limit the 
    potential to emit of HAPs directly under section 112(l) prior to this 
    revision to subpart E of 40 CFR part 63. Given the timing problems 
    posed by impending deadlines under section 112 and title V, EPA 
    believes it is reasonable to read section 112(l) to allow for approval 
    of programs to limit potential to emit prior to promulgation of a rule 
    specifically addressing this issue. EPA is therefore approving South 
    Dakota's combined construction permit/FESOP program now so that South 
    Dakota may begin to issue federally enforceable synthetic minor permits 
    as soon as possible. EPA also plans to codify programs approved under 
    section 112(l) without further rulemaking once the revisions to subpart 
    E are promulgated.
        As discussed in Section II.A.2.d. above and in the TSD, EPA 
    believes South Dakota's combined construction permit/FESOP program 
    meets the applicable Federal criteria for approval of such programs in 
    the SIP. In addition, South Dakota's construction and operating permit 
    program meets the statutory criteria for approval under section 
    112(l)(5), as follows:
        Regarding the statutory criteria of section 112(l)(5), EPA believes 
    South Dakota's permitting program contains adequate authority to assure 
    compliance with section 112 requirements since the third criterion of 
    the June 28, 1989 notice is met, i.e., since the State's program does 
    not provide for waiving any section 112 requirement. Sources that 
    become minor through a permit issued pursuant to these programs would 
    still be required to meet section 112 requirements applicable to non-
    major sources.
        Regarding the requirement for adequate resources, the State has 
    committed to provide for adequate resources to implement and enforce 
    the program. EPA will monitor the State's implementation of the program 
    to assure that adequate resources continue to be available.
        EPA also believes that South Dakota's construction and operating 
    permit program provides for an expeditious schedule for assuring 
    compliance with section 112 requirements. This program will be used to 
    allow a source to establish a voluntary limit on potential to emit so 
    as to avoid being subject to a Federal requirement applicable on a 
    particular date. Nothing in the State's program would allow a source to 
    avoid or delay compliance with the Federal requirement if it fails to 
    obtain the appropriate federally enforceable limit by the relevant 
    deadline.
        Finally, EPA believes it is consistent with the intent of the 
    section 112 and the Act for States to provide a mechanism through which 
    sources may avoid classification as a major source by obtaining a 
    federally enforceable limit on potential to emit.
        Accordingly, EPA finds that South Dakota's construction permit/
    FESOP program satisfies the applicable criteria for establishing 
    federally enforceable limitations on potential to emit both criteria 
    and hazardous air pollutants. Thus, EPA is approving South Dakota's 
    construction permit/FESOP program in ARSD 74:36:04 under section 112(l) 
    of the Act. 
    
    [[Page 46227]]
    
    
    IV. Final Action
    
        EPA is approving the revisions to the South Dakota SIP which were 
    submitted by the State on March 7, 1995 and on November 12, 1993. 
    Specifically, EPA is replacing the existing State regulations approved 
    in the SIP with the following chapters of the ARSD, effective on 
    January 5, 1995: 74:36:01-74:36:04, 74:36:06; 74:36:07, 74:36:10-
    74:36:13, and 74:36:15. However, EPA is not taking action at this time 
    on two definitions in ARSD 74:36:01 related to the State's acid rain 
    program which EPA will be acting on separately: ``acid rain permit'' 
    and ``acid rain program'' in ARSD 74:36:01:01(2) and (3).
        In addition to approving South Dakota's construction permit/FESOP 
    program in ARSD 74:36:04 as part of the SIP, EPA is also approving this 
    program under section 112(l) of the Act for the purposes of creating 
    federally enforceable permit conditions on HAPs. Note that in order for 
    EPA to consider operating permits issued under ARSD 74:36:04 to be 
    federally enforceable, the State must submit the proposed and final 
    permits to EPA in a timely manner, as well as meet the other 
    requirements of its program and the June 28, 1989 Federal Register.
        This approval provides the State with the authority for 
    implementation and enforcement of the following subparts of 40 CFR part 
    60: A, D, Da, Db, Dc, E, Ea, F, I, K, Ka, Kb, O, Y, DD, GG, HH, LL, QQ, 
    RR, VV, XX, AAA, JJJ, NNN, OOO, and SSS, effective July 1, 1993. 
    However, the State's NSPS authorities do not include those authorities 
    which cannot be delegated to the states, as defined in 40 CFR part 60.
        EPA is publishing this action without prior proposal because the 
    Agency views this as a noncontroversial amendment and anticipates no 
    adverse comments. However, in a separate document in this Federal 
    Register publication, EPA is proposing to approve the SIP revision 
    should adverse or critical comments be filed. Under the procedures 
    established in the May 10, 1994 Federal Register (59 FR 24054), this 
    action will be effective November 6, 1995 unless, by October 6, 1995, 
    adverse or critical comments are received.
        If such comments are received, this action will be withdrawn before 
    the effective date by publishing a subsequent document that will 
    withdraw the final action. All public comments received will then be 
    addressed in a subsequent final rule based on this action serving as a 
    proposed rule. EPA will not institute a second comment period on this 
    action. Any parties interested in commenting on this action should do 
    so at this time. If no such comments are received, the public is 
    advised that this action will be effective on November 6, 1995.
        Nothing in this action should be construed as permitting or 
    allowing or establishing a precedent for any future request for 
    revision to any SIP. Each request for revision to a SIP shall be 
    considered separately in light of specific technical, economic, and 
    environmental factors and in relation to relevant statutory and 
    regulatory requirements.
        Under the Regulatory Flexibility Act, 5 U.S.C. 600, et seq., EPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
    Alternatively, EPA may certify that the rule will not have a 
    significant economic impact on a substantial number of small entities. 
    Small entities include small businesses, small not-for-profit 
    enterprises, and government entities with jurisdiction over populations 
    of less than 50,000.
        Approvals of SIP submittals under section 110 and subchapter I, 
    part D of the Clean Air Act do not create any new requirements, but 
    simply approve requirements that the State is already imposing. 
    Therefore, because the Federal SIP-approval does not impose any new 
    requirements, I certify that it does not have a significant impact on 
    small entities affected. Moreover, due to the nature of the Federal-
    state relationship under the Clean Air Act, preparation of a regulatory 
    flexibility analysis would constitute Federal inquiry into the economic 
    reasonableness of state action. The Clean Air Act forbids EPA to base 
    its actions concerning SIPs on such grounds. Union Electric Co. v. U.S. 
    E.P.A., 427 U.S. 246, 256-66 (1976); 42 U.S.C. 7410(a)(2).
        Under Sections 202, 203, and 205 of the Unfunded Mandates Reform 
    Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 
    1995, EPA must undertake various actions in association with proposed 
    or final rules that include a Federal mandate that may result in 
    estimated costs of $100 million or more to the private sector, or to 
    State, local, or tribal governments in the aggregate.
        Through submission of this state implementation plan or plan 
    revision, the State and any affected local or tribal governments have 
    elected to adopt the program provided for under Section 110 of the 
    Clean Air Act. These rules may bind State, local and tribal governments 
    to perform certain actions and also require the private sector to 
    perform certain duties. The rules being approved by this action will 
    impose no new requirements; such sources are already subject to these 
    regulations under State law. Accordingly, no additional costs to State, 
    local, or tribal governments, or to the private sector, result from 
    this action. EPA has also determined that this final action does not 
    include a mandate that may result in estimated costs of $100 million or 
    more to State, local, or tribal governments in the aggregate or to the 
    private sector.
        Under section 307(b)(1) of the Clean Air Act, petitions for 
    judicial review of this action must be filed in the United States Court 
    of Appeals for the appropriate circuit by November 6, 1995. Filing a 
    petition for reconsideration by the Administrator of this final rule 
    does not affect the finality of this rule for the purposes of judicial 
    review nor does it extend the time within which a petition for judicial 
    review must be filed, and shall not postpone the effectiveness of such 
    rule or action. This action may not be challenged later in proceedings 
    to enforce its requirements (see section 307(b)(2)).
        This action has been classified as a Table 3 action for signature 
    by the Regional Administrator under the procedures published in the 
    Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
    July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
    Air and Radiation. The Office of Management and Budget (OMB) has 
    exempted this regulatory action from E.O. 12866 review.
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Incorporation by 
    reference, Particulate matter, Reporting and recordkeeping 
    requirements, Volatile organic compounds.
    
        Dated: August 10, 1995.
    Jack W. McGraw,
    Acting Regional Administrator.
    
        Chapter I, title 40 of the Code of Federal Regulations is amended 
    as follows:
    
    PART 52--[AMENDED]
    
        1. The authority citation for part 52 continues to read as follows:
    
        Authority: 42 U.S.C. 7401-7671q.
    
    Subpart QQ--South Dakota
    
        2. Section 52.2170 is amended by adding paragraph (c)(16) to read 
    as follows:
    
    
    Sec. 52.2170  Identification of plan.
    
    * * * * *
        (c) * * *
    
    [[Page 46228]]
    
        (16) On November 12, 1993 and March 7, 1995, the designee of the 
    Governor of South Dakota submitted revisions to the plan, which 
    included revised regulations for definitions, minor source construction 
    and federally enforceable state operating permit (FESOP) rules, source 
    category emission limitations, sulfur dioxide rule corrections, new 
    source performance standards (NSPS), new source review (NSR) 
    requirements for new and modified major sources impacting nonattainment 
    areas, and enhanced monitoring and compliance certification 
    requirements. The State also requested that the existing State 
    regulations approved in the South Dakota SIP be replaced with the 
    following chapters of the recently recodified Administrative Rules of 
    South Dakota (ARSD): 74:36:01-74:36:04, 74:36:06; 74:36:07, 74:36:10-
    74:36:13, and 74:36:15, as in effect on January 5, 1995.
    
        (i) Incorporation by reference.
    
        (A) Revisions to the Administrative Rules of South Dakota, Air 
    Pollution Control Program, Chapters 74:36:01 (except 74:36:01:01(2) and 
    (3)); 74:36:02-74:36:04, 74:36:06; 74:36:07, 74:36:10-74:36:13, and 
    74:36:15, effective April 22, 1993 and January 5, 1995.
    
        3. A new section 52.2184 is added to read as follows:
    
    Sec. 52.2184  Operating permits for minor sources.
    
        Emission limitations and related provisions established in South 
    Dakota minor source operating permits, which are issued in accordance 
    with ARSD 74:36:04 and which are submitted to EPA in a timely manner in 
    both proposed and final form, shall be enforceable by EPA. EPA reserves 
    the right to deem permit conditions not federally enforceable. Such a 
    determination will be made according to appropriate procedures and will 
    be based upon the permit, permit approval procedures, or permit 
    requirements which do not conform with the operating permit program 
    requirements of EPA's underlying regulations.
    
    [FR Doc. 95-21879 Filed 9-5-95; 8:45 am]
    
    BILLING CODE 6560-50-P
    
    

Document Information

Effective Date:
11/6/1995
Published:
09/06/1995
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Direct final rule.
Document Number:
95-21879
Dates:
This final rule is effective on November 6, 1995 unless adverse comments are received by October 6, 1995. If the effective date is delayed, timely notice will be published in the Federal Register.
Pages:
46222-46228 (7 pages)
Docket Numbers:
SD6-1-6947a and SD5-1-6191a, FRL-5279-3
PDF File:
95-21879.pdf
CFR: (2)
40 CFR 52.2170
40 CFR 52.2184